(Bloomberg) – Zurich Insurance Group AG, Switzerland's largest insurer, may increase its offering of insurance that helps protect banks from catastrophic losses like rogue trading by sharing risk with investors.
The first such product, which covered Credit Suisse AG, last month sold 220 million Swiss francs ($228 million) of similar notes underpinned by a policy with Zurich. That was short of its original target of 630 million francs.
|Policy would be sold to investors as bonds
The risks would be covered by a policy held by Zurich and part of it would be sold to investors as bonds. Credit Suisse sold similar notes last month, the first such product, which covered Credit Suisse AG, last month sold 220 million Swiss francs of such bonds underpinned by a policy with Zurich. That was short of its original target of 630 million francs.
"We are now exploring the possibility of offering similar solutions for other banks," a Zurich spokesman said in an e-mailed response to questions. "This is not an off-the-shelf product and so all approaches will need to be reviewed in detail based on an individual customer's need."
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